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3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Statement of earnings: BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of financial position Long-term liabilities: $ 0

3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Statement of earnings: BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of financial position Long-term liabilities: $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E10-11 Recording Bond Issue and First Interest Payment with Premium (with Premium Account) LO10-3 On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 9C.1. Table 9C.2. Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) View transaction list No 1 View journal entry worksheet Date January 01 Cash General Journal Debit Credit Ⓒ
Transcribed Image Text:E10-11 Recording Bond Issue and First Interest Payment with Premium (with Premium Account) LO10-3 On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 9C.1. Table 9C.2. Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) View transaction list No 1 View journal entry worksheet Date January 01 Cash General Journal Debit Credit Ⓒ
2. Prepare the journal entry to record the interest payment on December 31 of this year. Use effective-interest amortization and a premium account. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 Record payment of annual interest and amortization of premium for 12 months Note: Enter debits before credits. Date December 31 Record entry Statement of earnings: General Journal Clear entry Statement of financial position Long-term liabilities: BOCHINI CORPORATION Financial Statements For year ended December 31 3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Debit $ Credit View general journal 0
Transcribed Image Text:2. Prepare the journal entry to record the interest payment on December 31 of this year. Use effective-interest amortization and a premium account. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 Record payment of annual interest and amortization of premium for 12 months Note: Enter debits before credits. Date December 31 Record entry Statement of earnings: General Journal Clear entry Statement of financial position Long-term liabilities: BOCHINI CORPORATION Financial Statements For year ended December 31 3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Debit $ Credit View general journal 0
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